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Can you please explain in detail on how to get the answer for this question
On January 1, 2019, Bell Co. issued $10 million of 10-year bonds at 8% effective rate and elected a fair value option. On December 31, 2020, the effective rate is 6% due to decrease in general interest rates. How would the fair value adjustment affect the income statement and other comprehensive income statement? Ignore the effect of interest expense. Income Statement Other Comprehensive Income Statement A. no gain or loss no gain or loss B. no gain or loss gain C. no gain or loss loss D. gain no gain or loss E. loss no gain or loss On January 1, 2019, Bell Co. issued $10 million of 10-year bonds at 8% effective rate and elected a fair value option. On December 31, 2020, the effective rate is 6% due to decrease in general interest rates. How would the fair value adjustment affect the income statement and other comprehensive income statement? Ignore the effect of interest expense. Income Statement Other Comprehensive Income Statement A. no gain or loss no gain or loss B. no gain or loss gain C. no gain or loss loss D. gain no gain or loss E. loss no gain or loss
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Can you please explain in detail on how to get the answer for this question